Manny works for Medivac. Medivac is a manufacturer of spinal surgical equipment. Medivac is in preliminary talks with Medtronic to merge with Medtronic. Medtronic is the leader in spinal surgical equipment. Manny calls his brother Mitchell on Monday. Manny tells Mitchell to purchase shares in Medivac, as the proposed merger will be announced on Wednesday. Manny purchases $5 million dollars in Medivac shares. The merger is announced and Medivac stock soars from $5 dollars to $50 dollars. Did many violate federal securities laws? If so, what law and why?